Can my insurance company charge me a £100 cancellation fee?
My insurance company is charging me £100 for cancelling my policy even though I have paid up to date. Can they do this?
Asked on 27 March 2017 by Richard
Answered by
Honest John
The answer is no, but they still will. The cancellation charge should be a "reasonable amount" under the 2015 Insurance Act, which is usually no more than £30. Why are you cancelling the policy? Contact the insurer and advise that you're "expressing your dissatisfaction and wish to raise a complaint due to the excessive fee being charged to cancel the policy". Inform the insurer that you will be taking the complaint to the Financial Ombudsman Service. When a complaint gets escalated to the FOS the insurer gets charged. You may then find the insurer will waive the cancellation fee. You might find that when your raise it as a complaint with the FOS, they also may not settle in your favour, as it may be in the contract. Even though that term and condition seems unfair.
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